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V2557-19 19 September 2019 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

Collective retirement insurance benefits do not qualify for the 30 per cent reduction

A taxpayer inquired whether tax reductions could be applied to additional retirement capital received through a collective insurance scheme established by agreement. The Directorate General for Taxes (DGT) ruled that these amounts are classified as income from employment and therefore do not allow for the reduction applicable to irregular income.

The question raised

Tax treatment of the amount to be received. In particular, the possibility of applying any reduction.

The DGT's ruling

Collective insurance benefits that implement pension commitments are included in the tax base as income from employment. The reduction provided for in the eleventh transitional provision is not applicable unless it is proven that the insurance was contracted before January 20, 2006. Furthermore, these earnings are excluded from the 30 percent reduction for irregular income provided for in Article 18 of Law 35/2006.

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